Humana stock: buy or sell?

HUM stock price: $348.14 0.85% At close on December 6th, 2019

Updated on:
December 6th, 2019

3

Humana ended on Dec 6th at $348.14 and stepped up a tiny 0.85%. Counting December 6th, it's been 4 green days in a row, gaining $9.89 or 2.90%.

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. The company operates through four segments: Retail; Group and Specialty; Healthcare Services; and Individual Commercial.

Should I buy Humana stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Just 1 of our buy setups matches with Humana stock now:

Buy setupElegible
New all-time highNo
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Humana stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for HUM stock in the last 30 days.

The general sentiment of these ratings is bullish for HUM stock, with 10 positive ratings.
Is HUM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-30BMO Capital MarketsOutperformMarket Perform
2019-9-26Morgan Stanleyn/aOverweight
2019-9-20Berenberg Bankn/aBuy
2019-9-12Deutsche Bankn/aHold
2019-8-23Morgan Stanleyn/aOverweight
2019-8-23Canaccord Genuityn/aBuy
2019-8-12Cantor FitzgeraldNeutralOverweight
2019-8-1UBS Groupn/aNeutral
2019-8-1SunTrust Banksn/aHold
2019-8-1Piper Jaffray Companiesn/aOverweight
2019-8-1JPMorgan Chase & Co.n/aOverweight
2019-7-12Morgan Stanleyn/aOverweight
2019-5-2SunTrust Banksn/an/a
2019-5-2Oppenheimern/aOutperform
2019-5-2Morgan Stanleyn/aBuy

Humana stock analysis

Daily outlook

Humana ended on Dec 6th at $348.14 and stepped up a tiny 0.85%.

Humana shares stepped up 0.85% to $348.14 on December 6th. On October, SMA100d and SMA200d crossed up triggering a rise of 20.36%. Since last October when HUM stock price broke up the SMA200d line, it gained $84.14 (31.87%).

HUM stock chart (daily)

Weekly outlook

Shares of Humana ended this week at $348.14 and stepped up a good 2.03%. Counting this, it's been 5 climbing weeks in a row, soaring a 18.03%. By mid November HUM skyrocketed a phenomenal 5.36% in just one week.

Weekly chart tells us that price finally broke over the resistance at $304.83 and continued climbing. Since SMA20d and SMA40w crossed up by mid October, HUM price climbed $81.88 per share (30.75%). By mid October HUM price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

HUM stock chart (weekly)

Humana stock price history

Humana IPO was on December 31st, 1981 at $1.97 per share1. Since then, HUM stock surged a 17,572.10%, with a yearly average of 474.90%. If you had invested $1,000 in Humana stock in 1981, it would worth $175,721.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Humana stock historical price chart

HUM stock reached 52-week highs on December/6 at $350.46, and all-time highs 2018-11-07 with a price of 353.03.

Humana stock price target is $327.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 12 price targets for Humana stock:
HUM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-30BMO Capital MarketsDowngrades$345.00$290.00-15.9%
2019-9-26Morgan StanleyLowers Target$342.00$337.00-1.5%
2019-8-23Morgan StanleyRaises Target$315.00$342.008.6%
2019-8-12Cantor FitzgeraldUpgrades$300.00$345.0015%
2019-8-1UBS GroupRaises Target$266.00$317.0019.2%
2019-8-1SunTrust BanksRaises Targetn/a$340.00-
2019-8-1Piper Jaffray CompaniesRaises Target$315.00$341.008.3%
2019-8-1JPMorgan Chase & Co.Raises Target$288.00$322.0011.8%
2019-7-12Morgan StanleyLowers Target$331.00$315.00-4.8%
2019-5-2SunTrust BanksLowers Targetn/a$300.00-
2019-5-2OppenheimerLowers Target$373.00$350.00-6.2%
2019-5-2Morgan StanleySet Price Targetn/a$331.00-
(in average)$319.40$327.503.0%
The price prediction for Humana stock is $327.50, moving in a range between $350.00 and $290.00. In average, analysts' outlook on HUM price target is positive, increasing the forecast by a 3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Humana published its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will update this review.
HUM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a4.46n/a
2017-Q32017-11-083.273.393.7%
2017-Q42018-02-0722.063.0%
2018-Q12018-05-023.213.364.7%
2018-Q22018-08-013.793.964.5%
2018-Q32018-11-074.294.586.8%
2018-Q42019-02-062.532.654.7%
2019-Q12019-04-304.27n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Humana annual revenues soared a decent 5.85% to $56,912.00 million dollars from $53,767.00 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) slightly fell a -1.60% to 2.96%.

To have an updated picture of the financial situation of Humana, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Humana TTM sales up to March 2019 were $58,740.00 and income was $1,758.00 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Humana business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a fine 3.21%. Regarding profit margin, Humana remained stable 0.04% to 2.96%

HUM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$41,310 M-$1,230 M3.0%-
2014$48,500 M17.40%$1,147 M2.4%-6.75%
2015$54,289 M11.94%$1,276 M2.4%11.25%
2016$54,379 M0.17%$614 M1.1%-51.88%
2017$53,767 M-1.13%$2,448 M4.6%298.70%
2018$56,912 M5.85%$1,683 M3.0%-31.25%
TTM $58,740 M3.21%$1,758 M3.0%4.46%

Quarterly financial results

Humana posted $16,107.00 M in revenues for 2019-Q1, a 13.69% improvement compared to previous quarter. Reported quarter income marked $566.00 million with a profit margin of 3.51%. Profit margin appreciated a 1.01% compared to previous quarter when profit margin was 2.51%. When comparing sales to same quarter last year, Humana sales marked an amazing growth and skyrocketed a 12.80%.
HUM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$13,530 M-$650 M4.8%-
2017-Q3$13,282 M-1.83%$499 M3.8%-23.23%
2017-Q4$13,189 M-0.70%$184 M1.4%-63.13%
2018-Q1$14,279 M8.26%$491 M3.4%166.85%
2018-Q2$14,259 M-0.14%$193 M1.4%-60.69%
2018-Q3$14,206 M-0.37%$644 M4.5%233.68%
2018-Q4$14,168 M-0.27%$355 M2.5%-44.88%
2019-Q1$16,107 M13.69%$566 M3.5%59.44%

Humana ownership

When you are planning to invest in a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Humana, 0.20% of all outstanding shares are owned by its staff.

Bearish positions for HUM stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

HUMANTMCNCMOHUNH
Market cap$46.1 B$72.3 B$25.2 B$8.4 B$265.5 B
Total shares132.4 M253.6 M413.8 M62.7 M947.4 M
Float shares132.0 M253.2 M405.8 M58.0 M940.4 M
  - Institutional holdings (%)96.4%91.4%92.3%106.5%88.2%
  - Insider holdings (%)0.2%0.2%2.4%0.8%0.6%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Humana summary

Friday, December 6th, 2019
Open$345.30
Close$348.14
Day range$345.30 - $350.46
Previous close$345.21
Session gain0.85%
Average true range$5.77
50d mov avg$300.75
100d mov avg$291.76
200d mov avg$276.22
Daily pattern
Weekly pattern lb01c

Humana performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We chose Anthem, Centene, Molina Healthcare and UnitedHealth as the bechmarking frame for Humana stock.
Stock3m6m12m
HUMHumana27.55%40.48%14.69%
ANTMAnthem15.08%3.19%2.87%
CNCCentene32.88%12.49%-8.45%
MOHMolina Healthcare11.38%-13.29%0.38%
UNHUnitedHealth23.40%15.03%5.85%

Humana competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Humana. We chose 4 companies as Humana competitors as they are in the same industry or have similar market objectives.

Latest Humana stock news